Ambe and Badenhorst-Weiss (2011) state that public procurement is part of SCM. They argue that SCM entails managing all the processes and activities in supply chains, while procurement focuses more on sourcing and procuring goods within the supply chain. According to the authors, public procurement involves acquiring goods and services from suppliers in local and international markets by public-sector organisations using public funds (Ambe & Badenhorst-Weiss, 2012; Dzuke & Naude, 2015). This article focuses on procurement in the public sector. Public procurement is an important function of the South African government, as it has a major influence on the economy with regard to consumption and investment spending (Dzuke & Naude, 2015; Mojaki et al., 2024). According to the IMF, public procurement processes have an impact on how much the government pays for necessary inputs to deliver services (IMF, 2023).

Governments can increase the transparency of public procurement activities with e-procurement systems. E-procurement also helps collect timely and accurate data on procurement processes on a consistent basis (Organisation for Economic Co-Operation and Development [OECD], 2019). Mandala et al. (2024) assert that adopting e-procurement systems in public procurement is crucial for streamlining procurement processes, thus improving transparency and reducing inefficiencies. Studies reveal that there are still serious inefficiencies and challenges in the South African public procurement processes (Nzimakwe, 2023). According to Bjerke-Busch and Aspelund (2021), the public sector lacks rapid digital transformation because of factors such as legacy systems, global operations, work silos and organisational politics, which make public entities reluctant to transform their supply chains to DSCs.

Industry 4.0 necessitated organisations to undergo significant changes to embrace digital technologies. Organisations explored various digital tools and solutions to fully digitalise their operations by implementing significant changes through technologies and information-sharing capabilities to achieve a competitive advantage and remain competitive (Wu et al., 2025). Perkin and Abraham (2017) argue that digital transformation is unavoidable, irrespective of a company’s readiness to adopt it, and encompasses more than just technological change, involving fundamental and widespread organisational shifts. Digital transformation is an evolving process that uses digital capabilities and technology to support operational procedures, consumer experiences and business models to generate value (Morakanyane et al., 2017; Wu et al., 2025). An open culture of collaboration and creativity needs to be encouraged among supply chain participants and is crucial for digital transformation (Ngo et al., 2023). Organisations embarking on a digitalisation journey go beyond introducing digital technologies. These organisations include a digital strategy, new organisational structures, a cultural shift and talent (Salamah et al., 2024). According to Ngo et al. (2023), organisations must be aware of advanced technologies for DSC transformation to be successful.

Digital transformation in procurement has progressed from manual tasks, such as e-procurement, to the full automation of procurement processes, where purchase orders are automatically generated within a system and sent directly to the relevant supplier without human intervention (Glas & Kleemann, 2016; Maepa et al., 2023; Makudza et al., 2023). In the past, the primary goal of the technology-enabled change was to replace manual processes with faster, more efficient ones, such as e-procurement and e-invoicing, thus reducing cost and increasing efficiency (Omare, 2022).

The concept of a DSC is still developing but is already disrupting traditional supply chain networks (Queiroz et al., 2021). For purposes of this article, a DSC can be defined as an intelligent system that consists of software, hardware and network communications that synchronises and supports the supply chain activities and interactions (e.g. procurement, production, logistics and sales) between supply chain partners (Büyüközkan & Göçer, 2018). It is evident that a DSC is a technological system where supply chain processes, including procurement, are digitalised using advanced digital technologies.

The impact of digital technology on supply chains has been accelerating the transition to digitalised supply chains (Queiroz et al., 2021). With the evolution of SCM, organisations are seeking to integrate digital technologies into their activities to remain competitive in the digital era (Wang et al., 2022). By adopting digital technologies in SCM, organisations have the benefit of having supply chain practices that are more efficient, agile and lean (Dixit et al., 2024). However, the authors caution that supply chain managers need to be aware of both the challenges and opportunities that come with the adoption. Similarly, local governments are leveraging digital technologies to adapt organisational structures and improve public service delivery processes (Pittaway & Montazemi, 2020). According to the IMF (2023), public entities need to prioritise transitioning to new e-procurement systems that integrate all stages of the procurement process and connect to the relevant systems to reduce procurement transaction costs and increase competition. In an effort to make their processes more efficient and to enhance the ability to optimise supply chain and procurement strategies, organisations are considering various digital technologies such as the internet of things, cyber-physical systems, artificial intelligence, big data analytics, blockchain and cloud computing (Attaran, 2020; Bigliardi et al., 2022; Queiroz et al., 2021; Sony & Naik, 2020).

Digital technologies are important enablers in the transformation of supply chains. However, other factors also need to be incorporated to enable digital transformation. Queiroz et al. (2021) proposed an integrative framework comprising three essential resources that organisations should consider for the successful implementation of a DSC, namely: (1) information and communication technologies, (2) workers’ capabilities and (3) stakeholders. Sony and Naik (2020) identified six key ingredients for assessing an organisation’s readiness for digital transformation: (1) top-management involvement and commitment, (2) employee adaptability, (3) available digital technologies, (4) current level of digitisation in the organisation, (5) current level of digitisation across the organisation’s supply chain and (6) the readiness of the organisation’s strategy to transform to a DSC. Büyüközkan and Göçer (2018) developed a framework that provides even more detail about these ingredients. The authors looked at three main categories, namely: (1) the organisation’s digitalisation strategy, (2) technology implementation and (3) SCM and integration. In the framework, there are clear overlaps with the factors mentioned by Queiroz et al. (2021) and Sony and Naik (2020). Some of these factors include: The organisational culture, available digital technologies, the relationship between humans (or employees) and technologies, and the current technology infrastructure of the organisation. By incorporating all the above-mentioned factors, the following enablers can be derived:

Many obstacles to digital transformation remain. According to Bjerke-Busch and Aspelund (2021), there is a greater need to understand the drivers and barriers that are limiting digital transformation in public organisations. The authors distinguish between external barriers and internal barriers. External barriers include, among others, regulations, lack of system integration and finances, while internal barriers manifest at organisational and managerial levels (Bjerke-Busch & Aspelund, 2021). Dixit et al. (2024) distinguish between strategic, organisational and technological barriers. Digital transformation includes automation and augmentation. Automation happens when digital technologies replace humans (i.e. digital tools replace human labour), while augmentation entails humans using digital tools to complete tasks (i.e. employees collaborate closely with digital technologies to accomplish tasks). Digital transformation can completely change the characteristics of employees’ jobs. This may reduce job satisfaction while increasing stress and uncertainty about their future employment (Feng et al., 2025). However, there are also numerous benefits associated with DSC implementation. For example, DSC implementation allows for real-time and seamless communication and collaboration between interorganisational supply chain partners. Digital technologies allow for visibility across the supply chain and enhance efficiency and decision-making accuracy (Cheng, 2025). The literature presents several challenges and benefits of DSC implementation. Many of the benefits of DSCs are still untapped because important organisational transformations and their management are often neglected or postponed (Büyüközkan & Göçer, 2018). Some challenges and benefits of DSCs are listed in Table 1.

Dynamic capabilities refer to an organisation’s ability to sense (or identify), seize and transform opportunities and resources by integrating internal and external capabilities (Bleady et al., 2018; Shiferaw & Kero, 2024; Teece et al., 1997). The DCT is especially relevant in environments where technological changes are present. In fact, Shiferaw and Kero (2024) argue that organisations need to develop the necessary capabilities to transform their business models to adapt to these changes. These capabilities could then enable organisations to adapt to changing environments (Bleady et al., 2018). In line with the organisational capabilities highlighted by Shiferaw and Kero (2024), the dynamic capabilities may help the bulk water utility to:

Figure 1 illustrates the theoretical framework used in this research study. The framework shows how, in theory, the bulk water utility needs to sense (or identify) the enablers and the challenges of DSC implementation. Then, the bulk water utility needs to seize the relevant opportunities and commit the necessary resources to transform and implement its DSC strategy and reap the benefits of DSC implementation.

This study adopted an exploratory qualitative approach using a holistic single case study. The unit of analysis was a South African bulk water utility. The study investigated the benefits and challenges of implementing a DSC at this utility, specifically from a procurement perspective. The units of observation were SCM officials, managers and senior buyers who were employed by the bulk water utility and who had in-depth knowledge of the utility’s SCM processes and procurement systems. Twelve participants were interviewed. Purposive sampling was used to choose participants who could provide relevant information. Table 2 summarises the profile of the individual participants.

The researchers collected data by means of online semi-structured interviews and developed a discussion guide after reviewing relevant literature. This discussion guide was then pilot-tested and refined by topic experts who included a senior manager from the bulk water utility. All the participants received informed consent letters prior to the interviews, after which the researchers obtained the necessary approval. The interviews were conducted using MS Teams. All the participants were assured of their anonymity and the confidential nature of the study. Eleven of the 12 interviews were audio recorded with the participants’ consent. Notes were taken during the interview of one participant who did not want to be recorded. Probing questions were used to follow up on questions so that participants could explain or elaborate on their answers. The audio recordings of the interviews were transcribed verbatim using transcription software from MS Teams and were subsequently analysed. The 12 interviews (which included the initial pilot interview) were conducted between 07 August 2024 and 09 October 2024. The length of the interviews ranged between 30 min and 61 min, with an average duration of 47 min per interview.

Thematic analysis was used to examine the qualitative data by finding and presenting patterns in the detailed descriptive data. Creswell and Poth (2018) stipulate specific steps to analyse the data. These steps were used to ensure that the data analysis remained rigorous. Firstly, the interview transcripts were downloaded, checked for correctness and organised into folders. Secondly, the interview transcripts were read and then uploaded to ATLAS.ti. Next, codes were identified and used to create themes. Then, the information in each theme was analysed to look for connections and meanings to establish any relationship with the research questions. The codes, themes and subthemes are listed in Appendix 1 Table 1-A1, Table 2-A1 and Table 3-A1 at the end of this article. Appropriate citations from the transcripts are included with each code.

To ensure trustworthiness, the researcher adopted Lincoln and Guba’s (1985) four-criterion framework, which consists of credibility, dependability, confirmability and transferability. To establish credibility, several participants were interviewed. The research was credible because the participants were experienced and knowledgeable about the constructs included in the research instrument. In addition, similar results were identified across the participants’ interview responses. Dependability of the study was ensured by maintaining an audit trail that included detailed information on the research design, methodology, data collection and analysis. The researchers ensured that every interview was accurately transcribed and that the results were properly documented, arranged and presented using themes in a logical and methodical manner. The findings of this study were confirmed and corroborated with data from the bulk water utility. Transferability was ensured by achieving data saturation for the main findings. No new themes emerged during the last interviews.

Ethical clearance to conduct this study was obtained from the University of Pretoria Research Ethics Committee (Ref. No. u23806011/2024). Prior to conducting the interviews, all participants were informed about the study’s objectives, and they were asked to sign an informed consent form indicating their voluntary consent to participate. The participants could withdraw from the study at any time. Confidentiality and anonymity were assured by using pseudonyms for all participants.

The study’s first research question sought to understand the barriers in the bulk water utility’s current SCM and procurement processes. The theme for RQ1 was current barriers to SCM processes. A subtheme that emerged was current barriers to effective procurement process optimisation. Table 4 presents the participants’ responses and codes relating to the theme.

The second research question entailed identifying the enablers necessary to digitalise SCM, with particular emphasis on procurement at the bulk water utility. One main theme emerged from the collected data, namely successful project implementation. This theme highlights the key factors that can drive the successful transition of the bulk water utility’s procurement processes towards digitalisation. Two subthemes emerged from this theme, namely: (1) resources and capabilities and (2) strategic and financial considerations. Table 5 presents the participants’ responses to these subthemes along with the applicable codes.

The third research question related to the challenges that the bulk water utility needs to manage when implementing digital procurement. Three subthemes emerged: (1) cultural and organisational factors, (2) technology and system issues and (3) external factors. Table 6 presents the participants’ responses to these subthemes along with the applicable codes.

The fourth research question related to the benefits that digital procurement could bring to the bulk water utility. The main theme was thus the benefits of digital procurement transformation. Three subthemes derived from the main theme are: (1) operational efficiency and productivity, (2) compliance, security and risk management and (3) competitive advantage. Table 7 presents the participants’ responses to these subthemes along with the applicable codes.

This study provides significant theoretical insights into the application of DSCs in public-sector procurement, particularly in the context of the bulk water utility. Firstly, by exploring the barriers and benefits associated with DSC adoption, the research contributes to existing theories on digital transformation, supply chain integration and organisational change. It enhances understanding of how digital technologies impact procurement processes in the public sector, addressing gaps in literature that focus primarily on the private sector. Secondly, the study also highlights the strategic role of procurement in driving competitive advantage through digital transformation. Thirdly, it introduces the concept of barriers to digital transformation that are specific to the public sector, such as resistance to change and legacy systems, thus expanding the theoretical framework on supply chain digitisation. Finally, this research also paves the way for future studies that could explore DSC implementation across other public entities, contributing to the development of a more robust theoretical framework for digital procurement in the public sector.

For managers at the bulk water utility, the study provides several actionable recommendations. Firstly, it is imperative to address the challenges of manual procurement processes by prioritising the digitalisation of procurement systems. Automation and the adoption of the right technology should be top priorities to eliminate inefficiencies and improve process accuracy. Moreover, a clear strategy for upskilling staff should be implemented to ensure that employees are well-equipped to operate new digital systems effectively.

Secondly, stakeholder engagement is another critical factor. Successful digital transformation at the bulk water utility will require active support from senior leadership to overcome cultural resistance and ensure buy-in from all stakeholders. In addition, ensuring sufficient financial resources are allocated to the digital transformation project is essential to its success. The challenges related to system integration and regulatory compliance should also be addressed early on. A robust digital procurement system that integrates seamlessly across departments and is adaptable to evolving regulatory requirements will be essential for overcoming these barriers.

Finally, the potential benefits of digital procurement, including improved efficiency, cost savings and enhanced compliance, should be communicated clearly to all stakeholders to build support for the transition and ensure its long-term success. The findings as illustrated in Figure 2 can be used by managers to sense, seize and transform their entities.

While this study provides valuable insights into the bulk water utility’s procurement processes, it is not without its limitations. One notable limitation is the generalisability of the findings to all organs of the state or public procurement, as only the bulk water utility was studied. However, because the study was qualitative in nature, the objective was to understand the experiences of key participants. These experiences could assist the bulk water utility in deciding on DSC implementation. Future research can explore the experiences of other similar entities in South Africa to determine whether common challenges and enablers exist in their procurement processes. The second limitation of this study was the nature of the sample. Although the focus of this article was on procurement, it is acknowledged that supply chain decisions need to be made across various departments. Because of the specific focus of this research, the sample did not fully represent the diverse perspectives across all departments and levels within the organisation. Future research could include participants from other departments to incorporate their viewpoints and experiences. Furthermore, longitudinal studies that track the progress of digital procurement implementation over time could provide deeper insights into the long-term benefits and challenges of digital transformation in the public sector. Lastly, the study focused mainly on e-procurement, which does not encompass the entire supply chain. Further research is required to assess DSC implementation across other supply chain processes.